PMIC, BII partner to unlock up to USD30m of additional lending

ISLAMABAD: Pakistan Microfinance Investment Company (PMIC) and the British International Investment (BII), the UK’s development finance institution and impact investor, have partnered to unlock up to USD 30 million of additional lending through PMIC’s portfolio, supported by a USD 15 million risk-sharing facility from the BII.

The partnership will support wider financial inclusion in Pakistan, particularly for women.

According to the State Bank of Pakistan and the World Bank’s Global Findex Database, a large share of the country’s population remains excluded from the formal financial system. Pakistan’s microfinance sector currently serves an estimated 13.5 million clients against a potential market of 40.9 million; a gap concentrated among women, rural households and small businesses that remain outside the formal financial system despite being economically active in agriculture, trade and informal enterprise.

This partnership is designed to play a pivotal role in advancing broader financial inclusion. Under the agreement, BII will share risk on PMIC’s lending portfolio, allowing PMIC to raise credit limits of up to USD 30 million for its partner financial institutions and expand their capacity to serve underserved segments, particularly women clients. Expecting to reach a majority of women end-borrowers, this investment is qualified for the 2X Challenge, a global initiative that BII co-founded in 2018 to empower women’s economic development.

By expanding the flow of capital to partner financial institutions, the initiative is expected to help more women entrepreneurs access the finance they need to start, sustain and grow businesses, create jobs and strengthen household incomes. Increased lending to underserved communities can also support smallholder farmers, rural enterprises and local businesses that often face barriers to formal finance, enabling them to invest, build resilience and contribute more fully to Pakistan’s economic development.

Alongside the facility, BII will provide technical assistance in three priority areas: climate risk assessment and management, integration into investment processes and the development of new financial products.

The signing ceremony was attended by the British High Commissioner to Pakistan, Jane Marriott CMG OBE, senior representatives of PMIC and BII, and stakeholders from Pakistan’s financial and development sectors.

Yasir Ashfaq, Chief Executive Officer, PMIC, said: “This partnership between BII and PMIC reflects the trust that international and local financial institutions continue to place in us. It also strengthens PMIC’s ability to mobilise and deploy capital where it can have the greatest impact, helping our borrowers reach more women, rural communities and small businesses across Pakistan.

Copyright Business Recorder, 2026